That moment...

[maboroshi]

That moment when you see some one pull out a credit card the glint of it shining at you and you think wow I bet that guy must have money.

... and then you realize. Oh wait he is likely pouring his entire income in to paying back credit of some sort (House, Car, Credit Card, Business (maybe))

and you can't help but laugh at the situation. For everything else there is being debt free.

Maboroshi

[TheScottyTurner]

Maybe it was strictly a debit card (maybe even one that will send $1 to my savings every time I use it)?

Lmao....


I'm honestly kinda hesitant to get an actual credit card... But shit.... I tried getting a car about a year ago, and I was getting shit down left and right for having zero credit... They were saying bad was better than none.... I was just like "yeah, okay lmao"

I'll eventually get one, I'll just use it to fill up my tank once a month... Should be alright lol

[bad_brain]

hehe, yeah, when I was younger I was also impressed by people with credit cards....but later, when you are making your own money, you realize "hey, those people actually spend money they most like don't have right now".
I never got a CC, and I am not planning to ever get one....it's simply too tempting, and additionally you allow your consumer behavior to be tracked that way.
all I have is a poopy bank card which allows me to get money from my account via ATM, my dad always said "you can only spend money you are having" and he was absolutely right with that.....even if it sucks sometimes when having to wait a month or two until you have the money to buy something big.

[maboroshi]

This is true! Spending money you don't have is crazy and well logistically you would have to be an insane person to want a credit card or any form credit.

A civilization who loses it's freedoms because they are tied to an ever adjusting banking machine. Is not a civilization in my mind.

Maboroshi

[ph0bYx]

I partially agree, but I also think that it's important to learn economic responsibility and that from an early age. Of course it's irresponsible to go out and buy everything on credit and be tied to your debt for the rest of your life, but it's also good if the thing that you always wanted goes on discount for 50% due to the store getting closed or something and you don't have enough money on you to buy it, in that case a micro credit with 2-3% interest rate is nothing compared to the profit you make. Not to mention that a positive credit rating can get you that big credit when you really really need a lot of money - not saying that you ever will, but having that option is always nice.

Credit cards and banks aren't the problem here, it's the irresponsible economic behaviors of individuals.

[bad_brain]

right ph0, but as I said, it is tempting to spend money that you don't have...because it takes away the "do I have enough money to buy it?" step, a CC turns money into something virtual, no "looking into the wallet and count" first.
but yeah, if you have learned to deal with money properly right from childhood by having good role models you hesitate much more to spend money you don't have even if it is very tempting...and I also have to admit I also bought something on credit already, that was when my bike frame broke and I urgently needed a new one, so you also have a valid point there.

there is still a little fault on the bank side though: they make it too easy for people to get credit cards nowadays. I am still used to the days where you had to go to the bank in person and ask for one, you had to deliver your payslips of the last 6 months, and then, after a background check on their bank computer the decision was made if you get one or not. nowadays all you have to do is to fill a form on a website, and it's also no problem (it seems) to get a CC from another bank when you have reached the limit on others already....but well, in the end everyone is responsible for himself.

[reparto]

Dont card companies offer interest free periods? Can't you just abuse that to shuffle payment around until you have the cash to pay it off and hence you would avoid any interest rates?

[maboroshi]

I agree everyone should be responsible for their own actions. In this case economic responsibility.

However the tactics deployed by crediters are not there to benefit any one of us. Or even give you the opportunity to take responsibility for your actions.

I would suggest that not having a debt to pay off each month would give you more opportunity to save for that item that would possibly appear 50% off, implying that you would have a small savings invested at any one time.

I will agree that credit is certainly good for those situations you may be unprepared for. That is why I would suggest being prepared.

But at least that is what I would suggest over Canadian credit cards. 18% - 25 % interest is ludicrous. More common as 25 %.

*cheers

Mabo!

[maboroshi]

@reparto, I have never heard of this being offered. I do like the idea of influencing the system to work in your favour vs trying to fight against a concept or idea (The idea being credit). I am not that skilled or self contained myself at this point in life (at least with finances) to be able to do so.

But very valid point.

*cheers

Mabo

[ph0bYx]

25% interest rates are ridiculous!

I can't argue with your points on banks. We all know that they make money out of nothing and profit on the misfortunes of other people. And it's sad to see when someone is hit with an accident and can't pay off a credit and goes neck deep into debt, but it's also sad to see irresponsible behaviors that get people into large debts but those have it coming.

Mabs, what if that store with the 50% discount closes in two day? You can hardly save enough in that time. I agree with you on the importance of saving money, when I *hopefully* get a job with a somewhat steady paycheck the first thing that I plan to do is to aggressively save up at least 3 months worth of paychecks so that I have something to fall on if something happens. That and payoff any debts that I have, start some small investments, save up on different account for some minor things, if ever need it, so that I don't have to touch the emergency funds. Planning on saving left and right, and I seriously doubt I'll have a house or apartment and a car of my own until I get married and have kids. Oh well, that's just me rambling

[maboroshi]

In regards to that point about if there is something you want but don't have enough money and it's on sale or another situation you need a credit card.

This is my tentative plan

I will save a base savings of a decent amount the idea is this money is my zero starting point.

Say the base I would have is $5000.00 the idea is that this cash never goes below that amount. From then on the money I would have would be used/saved for anything I wanted to purchase or needed...

If for instance this sale came up and say I only had half the cost of the item available then technically I could borrow / credit myself from this savings. The amount borrowed would have to be paid back asap as if I was paying off credit of some sort.

if in the meantime of saving up that personal savings and something coming on sale. I would pass it up to be able to save the cash I needed for my base savings. Unless it is personal injury of some sort where I needed an expensive operation then I wouldn't see this as a problem to do

Anyway that's my idea of things

Edit * I think this is kind of what you meant about having the fall back money.

[reparto]

mab here are some 0% interest examples:
http://www.creditcardguide.com/balance-transfer.html" onclick="window.open(this.href);return false;

Some cards have an introductory 0% interest rate on purchases and balance transfers to get you hooked

Also, if you are going to save your money make sure to take into account inflation as that will erode your finances over time, you could try and abuse the increasing price of bitcoin to overcome this but there is the obvious risk with this.